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The weight-management program developed by Sanford Health has grown to nine sites in various stages of development, including two locations in Sioux Falls.

By midyear, Sanford plans to start selling franchises in places outside of the health system’s current footprint. That could bring the Profile concept initially into nearby markets such as Des Moines, Omaha and Lincoln, Neb., and the Twin Cities.

“All of those markets just outside of the footprint would certainly be of initial interest,” said Nate Malloy, chief operating officer of Profile.

The first Profile location opened in the fall of 2012 at 69th Street and Minnesota Avenue. A second one opened last year on Minnesota at 27th Street. Sioux Falls might support as many as five locations, Sanford executives said.

Profile’s membership has grown from a pilot group of 50 members to more than 3,000. The concept includes health coaching and a line of meal replacement products and foods.

“We planned and expected and hoped it would turn out this way,” said Nate White, the chief operating officer of Sanford Health. “All our assumptions have come through and been exceeded, so that’s why we’re putting the pedal to the gas.”

Profile will continue to develop and manage locations where Sanford Health also has a presence in the community or nearby. New locations include Watertown, and Worthington and Mankato in Minnesota.

While details of the franchise agreement and requirements aren’t finalized yet, Malloy said it will look like a typical franchise model with an initial fee, ongoing royalty and support for the franchisee from Profile.

“Our ultimate goal is to provide an ultimate turnkey solution, business-in-a-box, if you will, like the most successful franchise systems out there today, like a Subway.”

Franchise territories will be defined by population density. Malloy said the goal is to establish three to five franchised locations by the end of the year.

“We’ll take a very hands-on role in supporting our franchisee system,” he said. “Part of that process will be educating the new market about Sanford Health and helping them understand the science and the resources we have behind the program and the next step being to educate them about the program itself.”

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The expansion also will broaden and deepen the relationship with Sioux Falls-based Orion Food Systems, which has developed products for Profile that include individual-sized pizzas that are low in carbohydrates and high in protein as well as a private-label ice cream.

“Sanford is a great partner and always open to talking about innovation, so we have more products being developed,” CEO Hank Suerth said. “We’re excited about being involved on the ground floor.”

Weight-loss franchises have been among the most common concepts for 50 years, according to Tom Miller, executive vice president of Murphy Business & Financial Corp., one of the largest business brokerage firms in North America.

“And it keeps coming back because it’s a weight-loss business,” said Miller, who is based in Phoenix. “The trick is the ones who can get people to lose weight and change their lifestyles. For any person who takes 20 pounds off, nine out of 10 will put 22 back on. It’s a business, and it always replenishes itself.”

Many health systems nationwide offer weight-loss services, he said, but they’re doing it in-house and not breaking out into a separate concept.

“There’s absolutely no reason they (Profile) couldn’t take it to another level, but they just won’t have the endorsement … they have in their own market,” Miller said. “They’re going to have to see how far that endorsement shadow will carry. In this case, it’s really good to be under the watchful eye of the mother ship.”

Profile should “pound the life” out of states where Sanford is recognized, Miller said, build up success at those locations and then understand competition will increase considerably once growth moves outside the Sanford footprint.

“Smaller market states have come up with incredible businesses that have failed miserably in large-market franchising,” he said. “And it’s not because they’re not wonderful in their markets. It’s because the larger market didn’t appreciate it.”

Malloy, who brings a background in franchising fitness centers, said Profile will differentiate itself through the program’s combination of coaching, technology, physician support and meal-replacement products.

“It’s a highly competitive market space that still, in my mind, has a great need for solutions,” he said.